Average rates are rising across the board for first time in seven years.
Data monitor Moneyfacts’ latest UK Savings Trends Treasury Report shows the savings market is strengthening, with all average rates rising for the first time since February 2011.
As far as best buys are concerned, a growing number of providers are paying a whisker over 2% to savers willing to tie their money up for 12 months. The best one-year rate is 2.06% from Charter Savings Bank while Paragon, Secure Trust and ICICI banks all pay 2.02%.
However, the average rate according to research by data monitors Moneyfacts is just 1.32%.
The top easy-access rate is 1.4% from Coventry Building Society on its Limited Access Saver 2. It comes with a 0.25 percentage point bonus for the first year and limits you to making three free withdrawals every 12 months.
BM Savings Internet Saver pays 1.35%. There are no withdrawal restrictions, but it comes with a 12-month bonus of 1.15 points. After that, your rate plummets to just 0.2%.
The top rate with no bonus and no withdrawal restrictions comes from Paragon Limited Edition Easy Access account at 1.31%. RCI Bank Freedom Account and Shawbrook Bank Easy Access 12 follow close behind at 1.3%.
Ford Money has upped its rate to 1.29%, with the rate applying to all savers already in the account rather than just new savers.
On easy-access cash Isas the best rate comes from Virgin Money’s Double Take E-Isa at 1.35%, but you are limited to making two withdrawals a year.
The top rate with no withdrawal restrictions is 1.31% from Paragon’s Limited Edition Easy Access Cash Isa. Shawbrook Bank Easy Access Cash Isa 4 pays marginally less at 1.3%.
On fixed rate Cash Isas, Bank of Cyprus pays 1.54% for a year, with Paragon at 1.5% and Ford Money 1.45%. Coventry Building Society also pays 1.5%, but you have to tie your money up until the end of November next year rather than for just 12 months.